Application Of Target Cost Management Of Changqing S Company Based On Responsibility Center

With China’s accession to WTO, the competition between enterprises is becoming fiercer.In order to survive in this complex market competition environment and development，enterprises have to make new adjustment. Not only enterprises is very sensitive to the marketcompetition and the change of demand,but also can be continuously adjusted according tochanges in the market trend. As with the oil and mineral resources of petroleum enterprise howto further consolidate and improve the cost management of the goal itself, how to maintain thecompetitive situation is good, is a major issue in Changqing S company.To promote the innovation and theory of target cost management, based on the targetcost management theory from the start, first of all, the paper introduces the meaning andcharacteristics of the target cost. Secondly, it introduces the target cost management meaningand content. Finally, it elaborates the significance of the responsibility center theorycombined with the target cost management theory, and elaborates the combination of bothprocesses, to build a more comprehensive and realistic target cost management based onresponsibility center. It is the focus of this paper to use the target cost management modelbased on responsibility center into company. The author takes Changqing S company as theresearch object. This paper introduces the general situation of Changqing S company, anddescribes the company’s cost structure and the current status of major cost items, improvescost management mechanism, establishes target cost management model based onresponsibility centers. In Changqing S companyand each responsibility center as themain cost project decomposition layers, determine the target cost of each subject by way ofquestionnaire survey, by comparing the target cost and actual cost, found the problem and putforward specific proposals.Based on the responsibility center of the target cost management theory is helpful tooptimize the target cost of Chinese petroleum enterprises,to provide more useful informationfor Chinese petroleum enterprises to maintain a long-term development,has importanttheoretical significance and practical value.